Demand Management Plan - April 2021 - Ergon Energy

 
Demand Management Plan - April 2021 - Ergon Energy
Demand
Management Plan
April 2021
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

    Contents
    Message from our Executive                     3

    About us                                       4

    Introduction                                   4

    Our network                                    4

    Our core service area                          5

    Demand management                              6
    What is it?                                    6

    Customers participating in our DM Program      8

    Challenges and opportunities shaping our
    strategies and plan                            9
    Case study: The challenges caused by minimum
    demand                                         12

    Our strategy and plan                          14
    Overview                                       14
    Our principles                                 14

    Case study: Electric vehicles -
    Discovering customer charging and energy use   15

    Our strategies and initiatives                 16

    Case study: New load control tariffs deliver
    customer and network benefits                  17

    Our program                                    18

    DM Program budget and targets for 2021-22      20
    Covid-19 impacts                               20
    Energex forecast expenditure and targets       20
    Ergon Energy Network forecast expenditure
    and targets                                    20

2
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

Message from our Executive
We are experiencing                  (DER) such as rooftop solar PV       This Plan sets out our five-year
unprecedented rates of customers     and Electric Vehicles (EVs). This    strategy for our DM program
connecting small scale renewables    will support greater DER on          during this time of transformation.
such as rooftop solar photovoltaic   our network, new technologies        Our Plan is only as strong as our
(PV) systems, along with             such as batteries and EVs and        partnerships with our customers,
large scale renewables (solar        access to new markets that offer     DM providers and other industry
farms and wind farms) to our         incentives to customers for their    partners. We therefore look
network. It’s not slowing down;      services. Dynamic customer           forward to continuing to work
if anything, COVID-19 and the        connections for DER will also        with our existing and new
conditions of the past year have     support distribution networks        customers during 2021-22 and
only accelerated the take up of      in providing safe and secure         beyond; as we energise our
renewables across the network.       electricity supply.                  communities and empower our
                                                                          customers’ electricity usage
In the past we have highlighted      Demand Management (DM) is an
                                                                          choices and enable their ‘electric
the changing load profiles. The      important part of our response
                                                                          life’.
growing levels of solar generation   to transform our network,
across Queensland is now             particularly as the amount of
‘hollowing out’ the load during      variable renewable generation,
the middle of the day faster and     transport electrification and
we are seeing a rapid decline in     climate variability increases.
minimum demand during the day.       Historically, most of our effort
This has significant implications    has been on implementing non-
for the network, as it lowers        network DM solutions to address      Peter Price
the minimum demand system-           peak demand. Now DM has a            Executive General Manager
wide and creates local network       growing role to play in flattening   Engineering
challenges around managing           the demand curve by shifting
reverse power flows and voltages,    demand to fill the generation
and more broadly, impacts to         trough in the middle of the day,
system security.                     while still lowering the evening
                                     peak. This shift is critical to
To respond, we are transforming
                                     addressing the clear and present
our network into a state-wide
                                     danger to system security
intelligent network, with a focus
                                     associated with the accelerating
on ensuring that our customers
                                     decreases in minimum demand.
can benefit from alternative
                                     DM also complements the efficient
energy solutions and other
                                     roll-out of alternative energy
emerging technologies. Looking
                                     supply solutions, such as Stand
forward, we are introducing active
                                     Alone Power Systems (SAPS) to
connections and transitioning to
                                     customers in remote Fringe-of-
dynamic customer connections
                                     Grid areas.
for Distributed Energy Resources

                                                                                                           3
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

About us                          Introduction                           Our network
We are proudly part of the
Energy Queensland Group,
                                  Each year Energex and Ergon
                                  Energy Network publish a
                                                                                             7,570
                                                                                            employees
a Queensland Government           Demand Management Plan (DM
Owned Corporation, and            Plan) to engage and inform our
together we strive to deliver
on our vision to energise
                                  customers, DM providers and
                                  other industry partners on our                      33         isolated
                                                                                                 systems
Queensland communities            planned DM Program for the
and enable our customers’         next five years. It forms part of a
‘electric life’. Energex and      suite of strategies to deliver safe,
                                                                                   1.7 million
                                                                                           power poles
Ergon Energy Network’s role       affordable, secure and sustainable

                                                                                        3
is to operate the electricity     energy solutions. Consistent with
                                                                                               network control
distribution networks across      our corporate purpose, the DM                                centres
Queensland. These networks        Plan outlines initiatives that:
cover 1.7 million km2 across
Queensland. Ergon Energy
                                  • improve and maintain safety,
                                    security and reliability – by        2.3 million
Network supplies electricity                                             connected customers
                                    coordinating network and
to homes and businesses over        customer resources to work
a vast area covering around
97% of the state – from coastal
                                    together
                                                                                           35,000GWh
                                  • are customer focused –                             electricity delivered a year
and rural centres to remote
                                    supporting and enabling
communities of outback
Queensland and the Torres
Strait. Energex’s network
                                    customers in their energy
                                    choices                              3,354MVA
                                                                         Total capacity of small-
supplies electricity to homes     • are cost efficient – working         scale solar energy systems*
and businesses in the South         with customers, DM providers
                                    and other industry partners to
East region of the state.
The South East Queensland           deliver cost efficient initiatives                         660,870
region includes the major           to manage peak and minimum                            customers with solar
                                    demand constraints and                          energy systems connected*
urban areas of Brisbane,
Gold Coast, Sunshine Coast,         improve network utilisation to
Logan, Ipswich, Redlands and        keep costs down                      809MVA
                                                                         Total large-scale1 solar
Moreton Bay.                      • activate the market and              energy systems connected*
                                    transition – by paying for DM
                                    services where they provide          5,068MW                          737MW
                                    value; and responding to             (5pm 3 Feb 2020)        (11.30am 27 Sep 2020)
                                    regulatory and market changes        Energex                          Energex
                                                                         network-wide                 network-wide
                                  • help achieve the Queensland          peak demand#             minimum demand
                                    renewable energy target –
                                    by enabling connection of
                                    distributed energy resources
                                                                         2,660MW                              961MW
                                                                         (6.30pm 16 Dec 2019) (12.30pm 23 Aug 2020)
                                    (DER); integrating renewables
                                                                         Ergon Energy                 Ergon Energy
                                    into the network and leveraging      Network-wide                Network-wide
                                    all market participants              peak demand#             minimum demand
                                    to manage the technical
                                    challenges in achieving the                  7,419 Battery
                                    target                                   Customers       installations*
                                  • are fair and equitable – by
                                    unlocking the value of DM                            4,492
                                    services to achieve cost efficient                   Electric vehicles registered*
                                    outcomes for all, not just those
                                    with direct access to DER.           1
                                                                             Large scale solar PV systems are those
                                                                             larger than 5MW.
                                  The DM Plan meets Energex              * Figures as at January 2021.
                                  and Ergon Energy Network’s             #
                                                                             Data for summer 2020-21 not available at
                                  regulatory requirements under              time of publication.
                                  section 127C the Queensland
                                  Electricity Regulation 2006.

4
Demand Management Plan - April 2021 - Ergon Energy
Our 17 service areas
                                                                                1   Far North        7 Capricornia       13                                               Brisbane North
                                                                                2         Demand
                                                                                    Tropical Coast Management  PlanBurnett
                                                                                                     8 Bundaberg    2021-22
                                                                                                                         14                                               Brisbane Central
                                                                                3   Herbert          9 Fraser Burnett    15                                               Brisbane South
                                                                                4   Flinders        10 Darling Downs     16                                               Ipswich Lockyer
                                Boigu Is.
                          Dauan Is.       Saibai Is.
                                                                                5
                                                                                6
                                                                                    Pioneer
                                                                                    Central West        Our core service area
                                                                                                    11 South West
                                                                                                    12 Sunshine Coast
                                                                                                                         17                                               Gold Coast

                                   Ugar, Stephens Is.
                                           Erub, Darnley Is.
                                 Masig, Yorke Is.                                                       Our 17 service areas with 127 depots and offices ensure we are well
                           Iama, Yam Is.
                Mabuiag Is.                       Mer, Murray Is.                                       placed to energise communities across Queensland.
                   Badu, Is. Warraber, Is.           Poruma,
                                                     Coconut Is.
                              Kubin, St Pauls, Moa Is.                                                  1 Far North                      6 Central West                     10 Darling Downs                    15 Brisbane South
               Kiriri, Hammond Is.                                                                      2 Tropical Coast                 7 Capricornia                      11 South West                       16 Ipswich Lockyer
                                 Ngurupai, Wasaga, Horn Is.
                    Waiben,                                                                             3 Herbert                        8 Bundaberg                        12 Sunshine Coast                   17 Gold Coast
               Thursday Is.
ktown                                                                                                   4 Flinders                         Burnett                          13 Brisbane North
                                                         TORRES STRAIT
                                    Seisia                                                              5 Pioneer                        9 Fraser Burnett                   14 Brisbane Central
                                    New Mapoon
                                    Bamaga
ossman                              Injinoo
 Cairns
                   2                Umagico                                                                   Regional network - Ergon Energy Network
                                                                                                              Isolated supply - Ergon Energy Network                                        Our 17 service areas
      Innisfail
                                                                                                              Ergon Energy Retail                                                           1     Far North       7 Capricornia
      Tully

am                 3                                                                                          South East Network - Energex                                                  2     Tropical Coast 8 Bundaberg B
                                                                          Bamaga                              Depot locations                                                               3     Herbert         9 Fraser Burnet
 Townsville               Magnetic Is.
                                                                                                                                                                                            4     Flinders       10 Darling Down
                     Home Hill
ers
                   Bowen                                                                                                                                                                    5     Pioneer
                                                                                                                                                                                                     Gympie
                                                                                                                                                                                                                 11 South West
                                                           Mapoon
                                    Proserpine                                                                                                                                              6     Central West   12 Sunshine Coa
                                                           5
                                                        Napranum
                                                                                    Lockhart River
                                                                                                                                                                                                            Noosa
                         Pinnacle         Mackay

                                                        Aurukun                                                                                                                                      Nambour
                                                                                                                                                                                                                                  12
                                          Sarina                                                                                                                                                                       Maroochydore
                   Moranbah                                              Coen                                                                                                                            Caloundra

              Clermont
                  Middlemount
                                                                         7                                                                                                               Kilcoy             Woodford
                                                        Yeppoon Pormpuraaw                                                                                                                            Caboolture
                                                                                                                                                                          Toogoolawah
caldine
                                                           Rockhampton

                                                                                             8                                                                                                                                        13
                                                                                                                                                       SOUTH
                  Emerald            Blackwater                     Kowanyama                             Cooktown                                                                                       Redcliffe
                                                             Gladstone                                                                                                                   Esk
               Springsure
                                                                                                                                                       EAST
                                              Biloela             Miriam Vale
                                                                                                                                                                                                                       Brisbane
ackall                                                                                                                                                                                    Fernvale
                                      Moura
                                         Gununa, Monto
                                      Theodore
                                                 Mornington Is.
                                                       Gin Gin
                                                                 Bundaberg
                                                                                1                          Mossman
                                                                                                                                                                                Gatton
                                                                                                                                                                                                                                      14
                                                                                                                               2
                                                        Childers
                                                                    Hervey Bay                                 Cairns                                                                             Ipswich
                                                     Biggenden

                                                                                             9
                                                         Gayndah Maryborough                    Mareeba                                                                                                      Beenleigh

                                                                                                                                                                                            16                                        15
                                        Mundubbera
                             Burketown                                                          Atherton
                                                               Normanton                                          Innisfail
 Charleville                                                            Kilkivan             Ravenshoe
                                Doomadgee
                            Wandoan                                                                                                                                                                     Surfers Paradise
                                                                  Murgon                                          Tully
                                                                 Georgetown
                                                                                                                                                                                            Boonah Beaudesert
                                                                                                                                                                                                                                      17
                                       Kingaroy
                                                                                                                               3
                         Roma
                                         Chinchilla                 Yarraman                            Ingham                                                      QUEENSLAND
                                      Tara         Dalby          Toowoomba
                                                                                Brisbane                      Townsville              Magnetic Is.
               St George                       Millmerran
                                                                                                                                 Home Hill
                             Camooweal                            Warwick
                                                              Julia Creek                       Charters Towers
                                                                                                                               Bowen                                                               NEW SOUTH WALES
                             Mt Isa                Stanthorpe
                                                    Cloncurry

                                                                                            10
                                                                     Richmond                                                                   Proserpine
                                                                                             Hughenden

                                                                                                                                     Pinnacle         Mackay
                                                                                                                                                                       5
                                                                            4                                                                         Sarina
                                                                                                                               Moranbah
                             NORTHERN                                    Winton

                                                   Boulia                                               6                 Clermont
                                                                                                                              Middlemount
                                                                                                                                                                                      7
                                                                                                                                                                    Yeppoon
                                                                                                                                                                       Rockhampton

                                                                                                                                                                                                            8
                                                                           Longreach                      Barcaldine          Emerald            Blackwater
                                                                                                                                                                          Gladstone
                                                                                                                           Springsure
                                              Bedourie                                                                                                    Biloela             Miriam Vale
                                                                                                           Blackall
                                                                                    Jundah                                                        Moura
                                                                                                                                                                  Monto               Bundaberg
                             SOUTHERN                                           Windorah
                                                                                                                                                  Theodore
                                                                                                                                                                         Gin Gin
                                                                                                                                                                          Childers
                                                                                                                                                                       Biggenden          Hervey Bay

                                                                                                                                                                                                            9
                                                                                                                                                                           Gayndah       Maryborough
                                              Birdsville                                                                                             Mundubbera

                                                                                                               Charleville                                                            Kilkivan
                                                                                      Quilpie                                             Wandoan
                                                                                                                                                                               Murgon
                                                                                                                                     Roma                    Kingaroy
                                                                                                                                                     Chinchilla                 Yarraman

                                                                            11                                                                    Tara         Dalby          Toowoomba
                                                                                                                                                                                            Brisbane
                                                                                           Cunnamulla                      St George                       Millmerran
                                                                                                                                                                                Warwick
                                                                                                                                                               Stanthorpe

                                                                                                                                                                                                         10
                    Figure 1: Our network and service area

                                                                                                                                                                                                                                       5
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

Demand Management
What is it?
DM is part of our suite of solutions   This definition recognises that      DM must be deployed to match
for network management                 DM need not be specific to           the temporal (i.e. how often and
which may be used instead of           removing network constraints         what duration) and spatial (i.e.
or in conjunction with network         only at times of peak demand.        what level of the network and how
expenditure, to ensure an              Rather that network constraints      many customers are affected)
optimised investment outcome           include a variety of technical       nature of the network constraint.
and ultimately savings to our          issues that the network needs        As more DER is connected to our
customers. DM solutions are also       to manage, including minimum         network, the temporal and spatial
known as non-network solutions,        demand and associated issues         nature of network constraints
as they provide an alternative to      with voltage, system frequency       will change. As such, our DM
network infrastructure solutions.      and power quality management;        capability continues to adapt
In the Energex and Ergon Energy        retirement or replacement of an      to address new and emerging
Network context, DM often              aging asset; redundancy support      network constraints; engaging
involves providing incentives to       during equipment failure and         our customers, DM providers and
our customers and DM providers         managing diverse power flows         other industry partners to identify
to modify demand and/or                and other system security issues.    new value propositions.
energy consumption so that we          In response to the growing levels
                                                                            There are several types of DM:
can reduce or delay network            of DER on the network, our DM
                                                                            Demand Response (DR) that
expenditure (i.e. removing or          strategy considers our customers’
                                                                            is used when required; energy
delaying a network constraint).        DER assets and the optimisation
                                                                            efficiency, which results in
                                       of end-to-end investment. DM can
                                                                            permanent reduction of demand;
                                       also be particularly valuable when
                                                                            and strategic load growth, which
                                       there is uncertainty in demand
                                                                            results in permanent increase of
                                       growth forecasts, as it does not
                                                                            demand, beyond ‘valley filling’
                                       lock in long-term investment. In
                                                                            (see Table 1). These approaches
                                       these situations, DM can provide
                                                                            are implemented by customers
                                       considerable ‘option value’ and
                                                                            or DM providers in exchange for
                                       flexibility.
                                                                            financial incentives or as required
                                                                            by a connection standard.

6
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

 Description
Demand Response (DR): Temporary modification of load or generation as required (e.g. in response to signal from network or
price signal). There are different types of DR used for wholesale, emergency, network and ancillary services.

Peak shaving – reducing demand during peak period (e.g. using onsite generation
or battery storage).
PeakSmart air conditioning is an example of emergency DR aimed at ‘peak
shaving’.

Load shifting – shifting demand outside of peak demand periods.
Load control tariffs are an example of network DR aimed at ‘load shifting’. They can
also be used for emergency DR.
Valley filling – shifting demand into periods of low demand.
Time of Use (TOU) tariffs and load control tariffs are examples of network and
wholesale DR aimed at ‘valley filling’.

Flexible load and generation – modifying load and generation according to DR
signals, published technical constraint envelopes and energy market prices (e.g.
batteries could be charged during times of low demand).
The Dynamic Customer Connection consultation2, Dynamic Operating Envelopes
(DOE), Vehicle to Grid (V2G) trials and AEMO’s recent Wholesale Demand Response
Mechanism consultation3 are potential future examples of wholesale and/or network
DR platforms, strategies and approach.

Energy Efficiency: Permanent reduction of demand, at peak times and non-peak times.

Energy efficiency – using less electricity to perform the same task.

Strategic flexible load growth: permanent increase of demand (where network capacity allows), beyond ‘valley filling’.

Strategic flexible load growth – encouraging new loads (where network capacity
allows), beyond valley filling. For example, growth in EVs and other modes of
electric transport and electrification of industrial processes.

Table 1: DM Approaches                                                                      Typical residential customer load profile
                                                                                            Load or generation after demand management measure
                                                                                            Typical solar generation profile

                                             2
                                                 See here for Enabling Dynamic Customer Connections for DER, Consultation Paper,
                                                 23 December 2020.
                                             3
                                                 See here for AEMO Wholesale demand response mechanism consultation.

                                                                                                                                            7
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

Customers participating
in our DM program
The merger of Energex and Ergon                                                                                   Energex      Ergon Energy
                                          Number of Customers
Energy Network has strengthened                                                                                 network area   network area
our position as the largest DM            Customers with load control tariff#                                      681,721       399,006
program in Australia, with over a
                                          Customers with PeakSmart air conditioners#                               83,851         5,485
million customers participating.
Around half (45% in South East            Customers who have reduced demand in Target areas*                        549            260
Queensland and 53% in regional
Queensland) of our customers          #
                                        As at 31 March 2021 and reported to AEMO
                                      *Includes contracted demand response (non-network generation contracts)
have a load control tariff and over
130,000 customers have installed
a PeakSmart air conditioner(s).
See Figure 2.

    Premises with controlled load
    Premises with PeakSmart air
    conditioning
    Premises with reduced
    demand in Target Areas

                                           Figure 2: Energex and Ergon Energy Network - Demand Management in Queensland

8
Demand Management Plan - April 2021 - Ergon Energy
Challenges and opportunities
shaping our strategies and plan
Our DM Plan has been developed to address a range of challenges, while harnessing emerging opportunities.
For further information refer to our latest Distribution Annual Planning Reports (DAPR).4

Energy affordability                              Decreasing minimum                       Demand outlook –
and value – affordability                         demand – trend                           localised demand growth
remains a core concern                            towards a network with                   driven by residential
for customers.                                    high penetration of                      population growth.
• Electricity affordability remains               renewable, decentralised,                • Peak demand continues to
  a concern for many customers                    asynchronous generation                    increase, with record network-
  – both from a cost of living and                has potential to cause                     wide peak demand days
  a business competitiveness                                                                 recorded in 20198 and 20209
                                                  network reliability and
  perspective. Electricity bills                                                             (Figure 1). Some areas of
  remain a top household cost
                                                  security issues.                           Queensland are continuing to
  of living concern for customers                 • The Queensland Government                see localised spikes in growth,
  with that concern second to                       has set a target to achieve 50%          for example, where new
  health/medical costs overall.                     renewable energy by 2030.                property developments are
  Over half – 51% – of regional                   • Queensland has the highest               being established.
  Queenslanders have indicated                      penetration of solar PV systems        • Areas of the network with
  they have moderate-high bill                      on detached houses (Figure               increasing peak demand, may
  concern with 44% of customers                     1), not only in Australia but            create the need for additional
  in the South East also indicating                 compared with any country6.              investment as Energex and
  moderate-high bill concern5.                      Solar installations                      Ergon Energy Network must
                                                  • continue to trend upwards -              maintain enough capacity and
                                                    including residential rooftop            voltage stability to supply every
                                                    systems, larger systems on               home and business on the day
                                                    commercial and industrial                of the year when electricity
                                                    sectors and solar farms.                 demand is at its maximum.
                                                    This growth in PV systems
                                                    is leading to an increasing
                                                    number of distribution feeders
                                                    experiencing reverse power
                                                    flows during the middle of the
                                                    day. Record network-wide
                                                    minimum demand days were
                                                    recorded in 20207 (Figure 1).

4
    Energex DAPR see here and for Ergon Energy Network DAPR see here
5
    Queensland Household Energy Survey 2020
6
    Ergon Energy Network, Distribution Annual Planning Report 2020-21 to 2024-25 (pp131)
7
    Energex and Ergon Energy networks
8
    Ergon Energy Network
9
    Energex network

                                                                                                                               9
Demand Management Plan - April 2021 - Ergon Energy
Demand Management Plan 2021-22

Growing number of                              Stand Alone Power                       Customer uptake of
Electric Vehicles (EVs)                        Systems (SAPS) costs                    Internet of Things (IoT)
could increase evening                         are reducing, making                    energy management
peak demand.                                   them increasingly cost                  devices (e.g. Home
• To date, EV uptake has been                  competitive with network                Energy Management
  modest (Figure 1). Transport                 delivered electricity                   Systems (HEMS)).
  modes such as fleet vehicles                 supply for Fringe-of-Grid               • Advancements in the IoT
  and public transport are being
                                               customers.                                will provide opportunities
  increasingly electrified.                                                              for energy management.
                                               • Many of our customers in
• If EV charging is unmanaged,                                                           Machine learning, automated
                                                 remote areas of Queensland
  the additional load on the                                                             decision making and seamless
                                                 (Fringe-of-Grid) are serviced
  network is likely to coincide                                                          communication between
                                                 by very long lengths of
  with the existing evening peak.                                                        people, devices and data
                                                 network. Around 4% of Ergon
• Vehicle to Grid (V2G) charging                 Energy Network’s customers              will enable remote control of
  technology, while at an early                  are provided electricity by             appliances, and for devices to
  stage of development, is                       65,000km of line. In some               automatically manage power to
  expected to provide a range of                 cases, SAPS such as renewable           different appliances/devices to
  energy services including DR in                generation and energy storage           optimise electricity usage.
  the future.                                    can provide a cost-efficient          • Currently there is moderate
                                                 alternative to network for our          interest in HEMS services, with
Increasing climate                               Fringe-of-Grid customers. We            the focus on receiving personal
variability could increase                       continue to support legislation         recommendations on how to
frequency of heat waves,                         that facilitates both third             save11.
                                                 party-led and network-led
bushfires and other
                                                 SAPS options so that improved         Introduction of innovative
severe weather events.                           cost-to-serve outcomes can be         tariffs (e.g. time varying
• A changing climate is leading to               achieved in our Fringe-of-Grid
  changes in the frequency and
                                                                                       and additional load
                                                 locations.
  intensity of extreme weather                                                         control tariffs).
  and climate events, including                Customer uptake of                      • New network tariff structures
  extreme temperatures, greater                                                          have been released as part
                                               batteries.                                of the transition towards an
  variations in wet and dry
  weather patterns (e.g. flooding,             • To date, uptake of residential          intelligent network. Three
  drought), bush fires, cyclones,                battery energy storage systems          new load control tariffs for
  storms and storm surges, as                    has been low (Figure 1). The            business have been introduced,
  well as changing oceans and                    average capacity of a home              in addition to the two existing
  sea levels. This necessitates                  battery storage system is               ones for residential. Recent
  increasing network adaption                    around 10kWh.                           tariff changes have also
  and resilience (e.g. successive              • Investment in batteries is              resulted in 12 Time of Use
  hot days causing peak                          predicted to grow as their              (TOU) tariffs being available
  demand), while also ensuring                   costs decrease. Around 29%              to business and residential
  we can respond quickly and                     of Queensland households                customers in Queensland.
  safely during and after extreme                stated their intention to install a
  weather events.                                battery in their homes over the
                                                 next 10 years10.
                                               • Batteries for network use
                                                 (grid-scale) are currently
                                                 being investigated to address
                                                 minimum demand and for use
                                                 in Fringe-of-Grid and isolated
                                                 networks areas.

10
     Queensland Household Energy Survey 2020
11
     Queensland Household Energy Survey 2020

10
Customer uptake of
advanced digital meters
(ADMs).
• ADMs are progressively
  being rolled out for electricity
  customers in Queensland.
  ADMs are capable of two-way
  communication, where they can
  send and receive data. They
  provide opportunities for both
  increasing network visibility
  enabling DR from downstream
  appliances.

Development and
implementation of
Future Grid (network)
capabilities that
complement existing
load control assets and
systems (e.g. Audio
Frequency Load Control
(AFLC)).
• Future grid (network)
  capabilities are being
  developed that provide
  visibility, constraint
  identification and definition,
  and communication with
  external systems. This will
  enable networks to interact
  with cloud-based DR and other
  network services.
• The capabilities will
  complement existing load
  control assets and systems.
  Energex and Ergon Energy
  Network maintain AFLC
  equipment across the State
  that facilitates a large footprint
  of load control tariffs and
  services being available for
  network and customer use. We
  are continuing to monitor and
  manage these assets to ensure
  that they both continue to
  provide value.

                                       11
Demand Management Plan 2021-22

CASE STUDY
The challenges caused by minimum demand
The speed at which customers         Maximum operational demand               We have been implementing
are adopting rooftop PV, and         has shifted to later in the day          solutions in response to this
larger-scale solar systems are       by an hour or two, when solar            challenge and are building on these
connecting to our networks is        PV contribution is falling, but          by exploring additional initiatives
unprecedented. When customers’       temperatures remain high.                to ensure positive outcomes for
energy needs, particularly during    Minimum system demand is                 Queensland customers. We are
daylight hours, are being met by     increasingly posing a risk to system     actively pursuing innovative ways
their own DER, such as solar PV,     security, as it will be difficult with   to address the challenges of
this results in low demand for       the current mix of generation to         integrating DER to our networks.
energy from the network. At the      maintain stable operations through
same time, some solar PV systems     the middle of the day and ramp up
are exporting surplus energy         scheduled generation to meet the
                                                                              12
                                                                                   Refer here to 2020 Electricity Statement
                                                                                   of Opportunities published by AEMO,
into the network. Consequently,      evening peak.                                 August 2020
we are seeing lower operational
                                     This is a national issue which is
minimum demand and greater
                                     challenging the business models
volumes of reverse power flows.
                                     and operational frameworks of
Minimum demand is the lowest         our distribution networks. In the
level of demand from the network     recent 2020 Electricity Statement
at any given time. 2020 saw record   of Opportunities published by
minimum network-wide demands         the Australian Energy Market
with year-on-year reductions,        Operator (AEMO)12, distribution
followed months after by record      networks were urged to commence
peak demands. This is driving        development of programs to
increased rates of reverse flows,    implement emergency PV shedding
which will rival peak demand flows   capabilities, as a ‘backstop’ system
in coming years in some places.      security measure.
Across the Energex and Ergon
Energy Network, around 20% of
medium voltage (MV) distribution
feeders are experiencing reverse
power flows.

12
Demand Management Plan 2021-22

                                                       Solar PV Capacity                                                                                                                            Minimum Demand
             1600                                                                                                                                                                                                                                                                                                                                                                         2020-05-03 11:30,                                                                                                              2500
                                                                                                                                                                                                                                                                                                                                                                                              953 MW,
             1400
                                                                                                                                                                                                                                                                                                                                                                                               27%

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          PV Capacity (MW)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         2000
             1200
                                                                                                                                                                                                                                                           2019-05-06 11:30,
Load (MW)

             1000                                                                                                                                                                                                                                             1309 MW,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         1500
                                                                                                                                                                                                                                                                 12%
              800

              600                                                                                                                                                                                                                                                                                                                                  2020-09-27 11:30,                                                                                                                                                     1000
                                                                                                                                                                                                                                                                                                                                                      737 MW,
              400                                                                                                                                                                                                                                                                                                                                       23%                                                                                                                                                             500
              200

                   0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0
                    2012                                         2013                                           2014                                               2015                                        2016                                        2017                                            2018                                            2019                                        2020                                            2021                                        2022

                                                                                                                                                                                                                                                           Year

  Figure 3: Energex historical minimum demand and solar PV capacity

                                                       Solar PV Capacity                                                                                                                            Minimum Demand
                                                                                                                                                                                                                                                                                                                                                                                                               2020-05-03 13:00,
             1400                                                                                                                                                                                                                                                                                                                                                                                                 1074 MW,                                                                                               2000
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         1800
             1200

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          PV Capacity (MW)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         1600
             1000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        1400
Load (MW)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         1200
              800
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              600                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        800
                                                                                                                                                                                                                                                                                                                                                                                                                  2020-08-23 12:30,
              400                                                                                                                                                                                                                                                                                                                                                                                                     961 MW,                                                                                            600
                                                                                                                                                                                                                                                                                                                                                                                                                       10%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         400
              200
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         200
                   0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0
                   2012                                          2013                                           2014                                               2015                                        2016                                        2017                                            2018                                            2019                                        2020                                            2021                                        2022

                                                                                                                                                                                                                                                           Year

  Figure 4: Ergon Energy Network historical minimum demand and solar PV capacity

                                            FY2013                                                                                FY2020                                                                                  FY2013                                                                                  FY2020                                                                                   FY2021
            6000
                                                                                                                                                                                                                                                                                                                                                                                                                            2020-02-03 17:00,
                                                                                                                                                                                                                                                                                                                                                                                                                               5,068 MW

            5000

            4000
Load (MW)

                                                                                                                                                                                                                                                                                                                                               2012-12-03 16:30,
                                                                                                                                                                                                                                                                                                                                                  4,450 MW
            3000

            2000
                                                                                                                                                                                                                                                                                 2020-05-03 11:30,
                                                                                                                                                                                                                                                                                     953 MW

            1000
                                                            2013-03-31 03:30,
                                                                1,499 MW                                                                                                                                                                                                                                                2020-09-27 11:30,
                                                                                                                                                                                                                                                                                                                            737 MW
              0
                    00:00:00

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                                                                                                                                                                                                                                                           Time

  Figure 5: Energex historical maximum and minimum demand daily profile

                                            FY2013                                                                                FY2020                                                                                  FY2013                                                                                  FY2020                                                                                   FY2021
            3000
                                                                                                                                                                                                                                                                                            2012-12-17 15:30,                                                                                                                                                                           2019-12-16 18:30,
                                                                                                                                                                                                                                                                                               2,428 MW                                                                                                                                                                                    2,660 MW

            1500

            2000
Load (MW)

            1500

            1000

                                                                                                                                                                                                                                                                                                                                                   2020-05-03 13:00,
                                                     2012-12-25 04:00,                                                                                                                                                                                                                                                                                1,074 MW
             500                                         990 MW                                                                                                                                                                                  2020-08-23 12:30,
                                                                                                                                                                                                                                                     961 MW

              0
                    00:00:00

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                                                                                                                                                                                                                                                           Time

  Figure 6: Ergon Energy Network historical maximum and minimum demand daily profile

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             13
Demand Management Plan 2021-22

     Our Strategy and Plan
     Overview                                                             Our principles
     The DM Plan for 2021-22 sets out                                     Our six guiding principles,
     how we will continue to work                                         that underpin the DM Plan, are
     with our customers, DM providers                                     based on the Energy Network
     and other industry partners over                                     Australia’s balanced scorecard
     the coming year. Our strategy is                                     in the Electricity Network
     ultimately about reducing network                                    Transformation Roadmap
     costs through implementing                                           (ENTR)13. These principles have
     effective and efficient DM. We will                                  been used to prioritise our
     build on our existing initiatives                                    initiatives and activities. See
     and deliver on our goal of                                           Figure 3.
     providing a secure and reliable
     network. We will continue to listen
                                                                          13
                                                                               https://www.energynetworks.com.
     to our customers, DM providers                                            au/projects/electricity-network-
     and other industry partners and                                           transformation-roadmap/
     continuously strive to innovate to
     have a responsive DM Program.

                                                                                                    Are cost
                                                              Are customer                   efficient – working
                                                          focused – supporting               with customers, DM
                                                              and enabling                 providers and industry
                                                            customers in their            partners to deliver cost
                Help achieve                                 energy choices                 efficient initiatives to
              the Queensland                                                             manage peak and minimum
        renewable energy target –                                                         demand constraints and
        by enabling connection of                                                             improve network
       DER, integrating renewables                                                            utilisation to keep
           into the network and                                                                   costs down
           leveraging all market
          participants to manage                                                                                      Activate
         the technical challenges                                                                                  the market and
              in achieving the                                                                                 transition – by paying
                   target                                                                                      for DM services where
                                                                                                                 they provide value
                                                                                                                 and responding to
                                                                                                                   regulatory and
                                                                                 LO AL

                                                                                                                  market changes
                                                 O GY

                                                                                   V
                                                                                   W UE
                                               TI R

                                                                                     ER D
                                                  N
                                             SI E
                                            N N

                                                                                       B ER
                                          A NE

                                                                                        IL V
                                                                                          S
                                                                                          LS IC
                                       TR EA

                                                                                            FO ES
                                          L
                                        C

                                                                                              R

                                                         CUSTOMER CHOICE
                                                           AND CONTROL
                                       SA AN

                                                                                         ES D
                                         FE D

                                                                                        V N
                                                                                      TI S A
                                           , R SE
                                              EL CU

                                                                                    EN S
                                                                                   C E
                                                IA RE

                                                                                 IN IRN
                                                  B
                                                    LE

                                                                                  FA

                                                                                                             Fair and
                 Improve and                                                                              equitable - by
               maintain safety,                                                                        unlocking the value
            security and reliability                                                                    of DM services to
              – by coordinating                                                                       achieve cost efficient
            network and customer                                                                      outcomes for all, not
              resources to work                                                                          just those with
                   together                                                                               direct access
                                                                                                             to DER

     Figure 3: Our principles

14
Demand Management Plan 2021-22

CASE STUDY
Electric Vehicles (EVs): Discovering
customer charging and energy use behaviours
In May 2020, we launched              Valuable insights gained to date,    • Not all participants fully
the Electric Vehicles (EV)            include:                               charge their vehicles. In fact,
SmartCharge program funded            • participants charge their EVs on     in one month, 30% of all EV
by the Demand Management                average around 8.4kWh per day,       participants did not charge
Innovation Allowance Mechanism          which is approximately 45% of        beyond 90%. This suggests EV
(DMIAM). This program researches        average current daily household      owners are mindful of protecting
potential impacts associated with       usage                                their battery life as much as
EVs charging on the network                                                  possible
                                      • the average distance travelled
and aims to provide a better                                               • Apart from overnight charging,
                                        per vehicle is approximately
understanding of EV owners’                                                  there appears to be plenty of
                                        37km per day (noting there are
experiences, how EV owners use                                               EV owners charging across the
                                        some extensive travellers in the
their vehicle and their approach to                                          middle of the day. Given a large
                                        program)
‘refuelling’ with electricity.                                               percentage of participants have
                                      • not all users charge their
The six-month recruitment                                                    solar PV, this suggests they
                                        EV’s regularly. From a load-
phase of the program has been                                                are taking advantage of using
                                        management perspective, it
completed with 197 EV owners                                                 solar to charge their vehicle. As
                                        will be challenging to predict
now participating (80% from                                                  further data is collected, it will
                                        EV charging times. It is also
South East Queensland and                                                    be clearer if working from home
                                        expected that charging
20% from regional Queensland).                                               arrangements due to COVID-19
                                        behaviour will change with time
Around 80% of participants have                                              have influenced charging
                                        as familiarity and confidence
rooftop solar PV and almost 20%                                              behaviour.
                                        of driving range increases and
have battery storage at home. The       changes in charger capacity        Additional qualitative research
participants include EV owners          occur                              during the EV SmartCharge
who live in apartment buildings;      • most participants are achieving    program will add detail to the
have more than one EV at their          over 4km from each kWh             charging data and will allow us to
address; and those who use their        consumed (not including energy     better forecast demand for EVs
vehicle for commercial use.             from regenerative braking)         across the electricity network.
                                      • around 60% of the EV charging
                                        is at home and 40% away from
                                        home, which includes public
                                        charging stations

                                                                                                             15
Demand Management Plan 2021-22

Our strategies and initiatives
                                                                                         Our Program
                                                                                                                Customer Outcomes
     Strategy                                                                           DM Initiatives –
                                                                                                                     (2025)14
                                                                                        what we will do

 Ensure efficient investment decision making                                               Broad Based        Downward pressure
                                                                                                              on network prices for
 We will continue to engage with customers and DM providers to seek DM                       Targeted
                                                                                                              customers, while supporting
 solutions to provide cost-effective alternatives to network options.
                                                                                                              choice as volumes of
 This approach will enable us to leverage investment across the electricity                                   DER and EVs continue to
 supply chain and deliver efficient, well planned network expenditure and                                     increase.
 apply downward pressure to network prices in the longer term.

 Active customer response enablers                                                      DM Development        Increased opportunity for
                                                                                                              customers to be rewarded
 We will maintain direct control of customer loads using our existing Audio
                                                                                                              for use of their DER to
 Frequency Load Control (AFLC) capability. We will complement this
                                                                                                              support the network, either
 capability, where cost efficient, by procuring and dispatching DR.
                                                                                                              directly or through an
 The procurement and dispatch of DR will require investment in intelligent                                    aggregator.
 network technologies and digital platforms. This will be implemented as
                                                                                                              Best practice DER
 part of our broader ‘Intelligent Grid Enablement’ investment.
                                                                                                              connection standards enable
 This enhanced capability will reduce network augmentation requirements                                       greater customer choice and
 and increase DER hosting capacity.                                                                           balance cost and risk13.

 Incentivising customer efficiency                                                         Broad Based        Local DM programs and
                                                                                                              tariffs give customers
 We will continue to provide incentives to customers and DM providers to                     Targeted
                                                                                                              incentives for more efficient
 provide DM solutions as part of our approach for delivering efficient non
                                                                                                              network usage.
 network options to defer, avoid or complement network investment.
                                                                                                              Customer experience is
 In the medium term, ’smart’ DER (e.g. demand responsive batteries or
                                                                                                              improved through online
 EVs) are expected to provide an increasing proportion of DM solutions,
                                                                                                              interactions.
 either directly or via DR aggregators.

 Manage two-way energy flows and minimum demand                                         DM Development        Increased DER hosting
                                                                                                              capacity while maintaining
 We will trial and test DM solutions to increase DER hosting capacity while
                                                                                                              reliability and power quality
 maintaining reliability and power quality performance at statutory levels.
                                                                                                              performance at current
 This is in line with our customer expectations and the Queensland                                            statutory levels.
 Government target of achieving 50% renewable energy by 2030.

 Transforming supply at the Fringe-of-Grid                                              DM Development        Communities benefit from
                                                                                                              SAPS/microgrid conversions
 We will continue to look for opportunities for DM to reduce the cost of
                                                                                                              in remote Queensland.
 electricity supply in remote areas.
 DM can be used to reduce the size and cost of customer DER and SAPS
 and form part of an integrated, cost-effective alternative to traditional
 network solutions.

 Support our Program by investment in innovation                                            Demand            Learnings from trials and
                                                                                          Management          projects are implemented
 We will continue to undertake innovative trials and projects to test and
                                                                                           Innovation         to deliver contemporary
 validate DM solutions. These trials will be supported by funding available
                                                                                           Allowance          and cost-effective network
 under DMIAM and will be targeted to accelerate future DM capabilities.
                                                                                           Mechanism          services to customers. Refer
                                                                                            (DMIAM)           to Energex DMIAM report
                                                                                                              here16 and Ergon DMIAM
                                                                                                              report here17.

14
     These customer outcomes are from the Our Future Grid Roadmap (our internal overarching strategy).
15
     See our recent consultation paper here on Enabling Dynamic Customer Connections for DER, December 2020
16
     https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf
17
     https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf

16
Demand Management Plan 2021-22

CASE STUDY
New load control tariffs
deliver customer and network benefits
Ergon Energy Network has              on those findings Ergon Energy         Dale Hollis, Bundaberg Regional
been working with industry            Network developed three new            Irrigators Group said… “many of
representatives to explore            load control tariffs – small primary   our members worked at length
alternative tariff options that       load control and large primary         with EQL in developing and
reduce electricity costs and          and large secondary load control       trialling T33 as a standalone
support tariff transition from        tariffs, which gained regulatory       dynamic load control tariff for
obsolete tariffs. Commencing          approval from July 2020.               irrigation pumps. With support
in 2018, with funding from the                                               from EQL, the Australian Energy
                                      These new load control tariffs
Queensland Government, and in                                                Regulator, Queensland Farmers
                                      will provide further loads under
partnership with Ergon Energy                                                Federation and customers, we saw
                                      control to assist us in managing
Retail, Ergon Energy Network                                                 the introduction of additional new
                                      our network. This is particularly
implemented several trials with                                              opt-in retail dynamic controlled
                                      useful in areas with high numbers
the farming sector to evaluate if                                            load tariffs for 2020-21. This has
                                      of non-domestic customers
irrigators could operate under load                                          been a win-win outcome that
                                      where there has been low take-
control tariffs.                                                             recognises the water energy
                                      up of load control tariffs. Small
                                                                             nexus.”
As load control tariffs have          and large business customers
predominantly been utilised by        now have an extra tariff option
residential customers connecting      to consider, providing greater
appliances like water heaters,        choice and control. For a typical
pool pumps and air conditioners,      small customer using around
a further aim of the trials was       50,000kWh per year, who has
to understand any technical           operations that are suitable to
issues that may be encountered        move to a load control tariff, this
when connecting much larger,          could result in savings of up to
non-residential equipment to          $3,500 per year.
interruptible tariffs.

The trials proved that load control
tariffs could be used by non-
domestic customers for operations
that were compatible with being
interrupted temporarily. Based

                                                                                                            17
Demand Management Plan 2021-22

Our program
 DM Initiative                                             2021-22 2021-22 Focus areas                                           2021-26

 Initiative: Broad Based

 This initiative is available to residential and small     Existing   • Continue to reduce costs of delivery                     Continue
 business customers across the whole network.                         • Continue to align Ergon and Energex programs
 It delivers direct control of loads during periods
 of extreme demand or emergency response,                             • Enhance customer and community experience
 preventing area problems and network outages.                          through improvements to incentive process
                                                                      • Continue to engage with installers to promote
 Incentives are provided to customers who enrol                         the PeakSmart air conditioning program and load
 in the PeakSmart air conditioning program or                           control tariffs.
 connect their appliances to load control tariffs.
 Incentives are also given to industry partners who
 install PeakSmart enabled air conditioners.

 Initiative: Targeted

 This initiative is available to customers and DM          Existing   • Increase our already substantial market                  Continue
 providers who can deliver DM solutions in specific                     engagement with customers and DM providers, so
 areas of the network identified as having future                       that more DM solutions are put forward to address
 network constraints.                                                   network constraints20.
 Market engagement is undertaken to seek DM
 solutions from customers and DM providers.
 Incentives are provided to customers or DM
 providers to provide DM solutions. Refer here18
 for Energex and here19 for Ergon Energy for more
 information.

18
     https://www.energex.com.au/home/control-your-energy/cashback-rewards-program/cashback-rewards-for-business/eligible-areas
19
     https://www.ergon.com.au/network/manage-your-energy/reward-programs/cashback-rewards
20
     Our Demand Side Engagement Strategy and Register are available for Energex here and Ergon Energy Network here

18
Demand Management Plan 2021-22

 DM Initiative                    2021-22 2021-22 Focus areas                                                                      2021-26

 Initiative: DM Development

 This initiative drives           Existing    Minimum Demand                                                                       Continue
 continuous improvement                       • Review DM solutions to address minimum demand including: enabling direct
 of existing initiatives                        control of rooftop solar; moving additional hot water heating into the middle
 and enabling future DM                         of the day using existing load control system (LCS); encouraging customers
 capability.                                    to shift more energy use to the middle of the day and informing households
                                                and businesses on the benefits of installing batteries or utilising load control
                                                tariffs for EV charging.
                                              • Undertake survey of PV installers and customers to better understand
                                                installer advice and customer views on maximising use of solar generation.
                                              Tariffs
                                              • Support customer connection to new load control tariffs for more mutually
                                                beneficial customer and network outcomes.
                                              Fringe-of-Grid
                                              • Support development of a tool to identify high cost to serve locations where
                                                alternative supply solutions may be cost effective
                                              • Investigate DM opportunities for Fringe-of-Grid customers.
                                              Intelligent Grid Enablement
                                              • Oversee implementation of Load Control Strategy as part of broader future
                                                network investment.
                                              • Support development of Low Voltage Distributed Energy Resource
                                                Management System (LVDERMS) and other related systems to orchestrate
                                                DR.
                                              • Support finalisation of AS/NZS 4755.2. This Standard provides framework
                                                for DR from customer appliances (including air conditioners, EVs, hot water
                                                systems and pool pumps).
                                              Electric Vehicles
                                              • Undertake engagement with customers and industry and analyse EV
                                                charging data to encourage network friendly charging21.
                                              • Promote to customers and key industry channels the optimum charging
                                                for customer and network outcomes that avoids contributing to network
                                                constraints.
                                              Smart developments
                                              • Partner with channels to market for DR outcomes in greenfield developments
                                                (including multi-unit dwellings).

 Initiative: Demand Management Innovation Allowance Mechanism (DMIAM)

 The initiative supports          Existing    Tariffs                                                                          Continue
 future energy choices                        • Implement capacity tariff trial.
 and DM capabilities
 that reduce long term                        Intelligent Grid Operations
 network costs.                               • Trial Direct Load Control (DLC) and aggregated DR services via third parties
                                                (eg. Retailers, HEMs providers).
 A suite of innovative
 trials and projects to                       • Increase network hosting capacity of DER through improved network
 test and validate DM                           visibility and dynamic operating envelopes.
 products and processes                       Electric Vehicles
 are funded via DMIAM.                        • Gather data on actual electric vehicle customer charging and energy use
 Every year progress                          • Exploring feasibility of a Vehicle to Grid (V2G) functionality trial.
 on DMIAM projects are                        Fringe-of-Grid
 published, refer to our
 annual DMIAM reports                         • SAPS customer pilots
 (Energex22/Ergon Energy                      • Partnering with customers to optimise DER in Fringe-of-Grid areas.
 Network23).                                  Commercial and industrial DR
                                              • Trial DR from industrial customers and water/sewerage utilities in rural and
                                                remote areas.
                                              • Trial DR on commercial air conditioning plant (thermal battery) in urban areas

21
     For more information see here for our Network Electric Vehicles Tactical Plan
22
     https://www.energex.com.au/__data/assets/pdf_file/0008/817460/Demand-Management-Innovation-Allowance-annual-report-2019-20.pdf
23
     https://www.ergon.com.au/__data/assets/pdf_file/0006/817629/Demand-Management-Innovation-Allowance-Report-2019-20.pdf

                                                                                                                                        19
Demand Management Plan 2021-22

DM Program budget
and targets for 2021-22
COVID-19 impacts
Slower economic conditions have seen an observable flattening of the uptake of the Broad Based Initiative during
2020-21 across Queensland. Given this and uncertainty around future impacts of COVID-19, a more conservative
approach has been taken towards target setting for 2021-22.

Energex forecast expenditure and targets
The forecast expenditure to                               Operating         Capital            Total       Demand
implement Energex’s DM Program          Initiative       Expenditure      Expenditure       Expenditure   Management   $/kVA
for 2021-22 is estimated at $5.69                          ($,000)          ($,000)           ($,000)       (MVA)
million (Table 3). The table also
                                        Broad Based          3,296              -                3,296       13.5       244
provides the breakdown of
performance targets for each            Targeted              1,144             -                1,144       14.4       79
initiative. Future year MVA
demand reductions may also              DM
                                                             1,249              -                1,249       n/a        n/a
change year to year dependent           Development
on program focus and customer           Total for
                                                             5,689              -              5,689         27.9       n/a
uptake of new technologies.             DM Program

                                        DMIAM                 1,100             -                1,100       n/a        n/a

                                       Table 3: Energex direct costs (excludes overheads)

Ergon Energy Network forecast expenditure and targets
The forecast expenditure                                  Operating         Capital            Total       Demand
to implement Ergon Energy               Initiative       Expenditure      Expenditure       Expenditure   Management   $/kVA
Network’s DM Program for 2021-                             ($,000)          ($,000)           ($,000)       (MVA)
22 is estimated at $4.51 million
                                        Broad Based           573               -                573         2.0        283
(Table 4). The table also provides
the breakdown of performance            Targeted             2,947              -              2,947         30.2       98
targets for each initiative. Future
year MVA demand reductions              DM
                                                              989               -                989         n/a        n/a
may also change year to year            Development
dependent on program focus              Total for
                                                             4,510              -                4,510       32.2       n/a
and customer uptake of new              DM Program
technologies.                           DMIAM                 1,100             -                1,100       n/a        n/a

                                       Table 4: Ergon Energy direct costs (excludes overheads)

20
Demand Management Plan 2021-22

                                 21
ergon.com.au
energex.com.au
Ergon Energy
PO Box 1090
Townsville QLD 4810
Energex Limited
                      2-21-0196

GPO Box 1461
Brisbane QLD 4001
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